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A Macro Model for a strong National E-conomyWed, 23 Mar 2016 14:23:18 +0000en-UShourly1https://wordpress.org/?v=4.9.10#-6- What is austerity for the dummies like me?http://capitallessism.com/6-what-is-austerity-for-the-dummies-like-me/
http://capitallessism.com/6-what-is-austerity-for-the-dummies-like-me/#respondFri, 29 Jan 2016 22:46:02 +0000http://capitallessism.com/?p=371…. And what are its chain reaction consequences… short, medium and long term?

Austerity is a solution for the banks but a burder to rest of society. By definition austerity measures proposed by banks as a solution for the crisis are counterproductive on medium term. Essentially they emphasize cutting down on government spending and limiting indebtment by people. However this.....]]>

…. And what are its chain reaction consequences… short, medium and long term?

Austerity is a solution for the banks but a burder to rest of society. By definition austerity measures proposed by banks as a solution for the crisis are counterproductive on medium term. Essentially they emphasize cutting down on government spending and limiting indebtment by people. However this in return produces direct income losses for people and by the governments, consequently losses on the income-spending chain. As a downspiralling cycle, it is thus causing less income for people to spend, consequently less profit for enterprises. As the downspiralling spending cut goes on profit losses in businesses will result job losses. This causes direct revenue losses for goverments in the form af tax revenues from enterprises and individuals. As a chain raction, this in turn will result a social burden for the government. They must provide some form of social assistance to avoid violence. However banks as in Greece insist that social programs be cut also, (social assistance, health-care, education, pension funds and retirement age). Basically austerity measures are designed to save up enough money in the national budget to assure payment of the interest for the national debt. So banks want to protect their interest revenues above all other social and national development considerations.

While this is perfectly legal the question …is it morally legitimate?

The problems and the weaknesses with austerity measures.

Austerity measures do not make considerations for an analysis of the national spending. Not on capital flight out of the country.

When Greece got a loan, it covered its immediate interest payment needs ( banks were haapy) but since unemployment is in the 40-50% rate its social burden increased. Government revenues from inc taxes do not cover social expenses + interest payment + future developments. So back to square one …. Go back to the table and ask for more loans …. Only to be told to make more cuts. However it did not stipulate that capital flight should be cut, in order to preserve a cert amount of circulating capital in the nation… to create new jobs. Instead german companies are doing booming business selling Greece their products, decreasing Greek employment, greek nat-incom, taxes etc.

So what is the LOGICAL solution , plug the hole in the barrel befor filling it up otherwise you waste capital and increase frustrations. Then create job and enterprises … more income for people more profit for enterprises and more tax revenues for governements and a downspiral of the socio-economy of the country. At the end of the cycle governements go more and more in debt because income-tax revenues don’t cover their needs = social programs + future development + interest payments on the national debt + capital repayment of the national debt. And they must offer many collaterals and concessions on their natural resources to multinationals and also lifting regulations and restrictions .

Workers go into debt when they lose their jobs, because of job cuts and cannot find employment and must offer as collateral their homes.

Families go into debt when they cannot cover their essential necessities for food, lodging, clothing, medical and education expenses.

Businesses go into debt when their profit margin shrinks because of diminishing revenues, because of generalized spending cuts, because of unrestricted cheap imports, because of unfair competitions from foreign firms.

The ultimate consequences of austerity measures : national and personal debts skyrocket

We should maybe forget about spending cuts …instead focus on inducing spending by quotas and introducing money circulation/saving regulations. At least this just another opinion of the author of a new controversial economic phylosopy, CAPITAL-less-ISM. soon to be published. http://www.capital-less-ism.com/ In this dynamic model, the economy is viewed as a gigantic capital-as-information circulating system much the same way as the.....]]>

#-5- Why are austerity measures wrong and outdated?! …..a short lesson on AUSTERITY.

By Dr. Anthony Horvath

We should maybe forget about spending cuts …instead focus on inducing spending by quotas and introducing money circulation/saving regulations. At least this just another opinion of the author of a new controversial economic phylosopy, CAPITAL-less-ISM. soon to be published. http://www.capital-less-ism.com/ In this dynamic model, the economy is viewed as a gigantic capital-as-information circulating system much the same way as the blood is circulating in the human body. In my humble opinion we must not drain the blood from a person already suffering from anemia. What do you think?

There must be other methods to stimulate the economy of a crisis stricken weak nation then …AUSTERITY MEASURES

‘’…Austerity Has Failed: …. an Open Letter From Thomas Piketty to Angela Merkel…’’

‘’….The never-ending austerity that Europe is force-feeding the Greek people is simply not working. Now Greece has loudly said no more. … Global campaign group Avaaz organized this open letter to Angela Merkel on the back of a petition, signed by over half a million Europeans, demanding an end to the failed austerity program in Greece….. As most of the world knew it would, the financial demands made by Europe have crushed the Greek economy, led to mass unemployment, a collapse of the banking system, made the external debt crisis far worse, with the debt problem escalating to an unpayable 175 percent of GDP. The economy now lies broken with tax receipts nose-diving, output and employment depressed, and businesses starved of capital….’’

FORGET ABOUT AUSTERITY PROGRAMS, QUITE THE CONTRARY, CREATE SPENDING REGULATIONS TO INDUCE CAPITAL CIRCULATION WITHIN THE NATION .. BOOST NATIONAL JOB AND ENTREPRENEURSHIP CREATION. Instead of cutting spending, quite to the contrary induce spending thus capital circulation. Stimulate the creation of micro, small, and medium entrepreneurship programs with democratic E-capital access. Protect national entrepreneurs and consumers from the predatory practices of GLOBALIZING “FREE TRADE” and from “FREE MARKET” ADVOCATE GIANTS. Reduce capital flight and regulate imports. Well, isn’t it what any first aid nurse would do to an injured person …STOP THE BLEEDING FIRST ….

THIS IS HOW THE ECONOMIC SUPERBOWL WORKS IN REALITY

Under austerity measures MANY NATIONS WILL EVENTUALLY BECOME ECONOMICALLY HANDICAPPED, caused by the never ending down-spiraling INDEPTMENT cycles: of increasing interest payments AND capital flights, which are then causing decreased national revenues, which causes decreased government spending. Then to compensate it causes an increase of taxes, which in turn is causing decreasing individual-entrepreneur revenues, causing more unemployment, causing increased social costs and more financial burden on the national budget. So slowly the wheel is turning back INCREASING NEEDS FOR MORE LOANS to compensate for the loss of capitals.

Do you want solutions instead of the magic AUSTERITOID pills? No AUSTERITY-STEROID pill in the world is going to improve Greece’s or Spain’s 50% unemployment rate.

This is just another opinion of the author of a new controversial economic phylosopy, CAPITAL-less-ISM. soon to be published. http://www.capital-less-ism.com/ In this dynamic model, the economy is viewed as a gigantic circulating financial information.....]]>

…by Dr. Anthony Horvath

THE FALLACY OF THESE AUSTERITY MEASURES.

This is just another opinion of the author of a new controversial economic phylosopy, CAPITAL-less-ISM. soon to be published. http://www.capital-less-ism.com/ In this dynamic model, the economy is viewed as a gigantic circulating financial information (capital) system much the same way as the blood is circulating in the human body. As the blood circulation, SUFFICIENT CAPITAL CIRCULATION MUST sustain production/consumption in the economy. AUSTERITY MEASURES represent an internal bleeding weakening the economy by a never ending capital hemorragy ot of the country. The ensuing capital anemia is the lack of sufficient amount of capital which must circulate freely as the blood in the body. consequently lack of capital will DEPRIVE enterprises, institutions and people causing unemployment and a downspiralling decrese in consumption, suffocating the entire economy, causing economic death of Geece.

AUSTERITY IS THE SOLUTION FOR THE BANKS BUT IT IS A BURDER TO SOCIETY

By definition austerity measures proposed by various governments as a solution for the crisis are counterproductive. They emphasize cutting down on government or personnel spending, which produces direct income losses on the income-spending chain, thus causing more job losses, and a downspiral of the socio-economy of the country.

Austerity is only partially effective while it cuts unnecessary spending (e.g., war costs) or unnecessary investment or gluts or capital flights. Any cuts in domestic spending affects domestic capital supply and circulation, thus jobs and further productivity. Then it reaches a multi-level critical point.

-1- critical level #1: when the decreased INCOME REACHES THE SPENDING LEVEL of the individual, thus no more saving is possible for rainy days

-2- critical level #2: USE UP SAVINGS, when the income level decreases below the spending necessity, thus he is required to dip into his savings

-3- critical level #3: GOING INTO DEBT, the income decreases below the spending level of the individual, thus it requires borrowing

-4- critical level #4: POVERTY LINE, when the income decrease reaches to the point where spending for necessities is impossible because of a lack of credit, producing social instability

Conclusion: austerity measures should apply for capital flight and gluts. Instead, we should focus on job and enterprise creation programs.

DO YOU WANT REAL SOLUTIONS???

LET’S START WITH

IN OUR NEXT ARTICLE OF THESE SERIES WE WILL ELABORATE ON SPECIFIC POINTS FOR GREECE

]]>http://capitallessism.com/4-austerity-the-german-miracle-worker-a-tentative-solution-for-ressurecting-greece-economy/feed/0#3 FOUR FACE SAVING SOLUTIONS FOR GREECE AND OTHER DESPERATE NATIONS TO RE-NEGOTIATE A DECREASE OF THE SIZE OF THEIR NATIONAL DEBTS.http://capitallessism.com/four-face-saving-solutions-for-greece-and-other-desperate-nations-to-re-negotiate-a-decrease-of-the-size-of-their-national-debts/
http://capitallessism.com/four-face-saving-solutions-for-greece-and-other-desperate-nations-to-re-negotiate-a-decrease-of-the-size-of-their-national-debts/#respondFri, 29 Jan 2016 22:36:54 +0000http://capitallessism.com/?p=354 AND ABOUT HOW TO FREE OURSELVES FROM IT…..

In our last article we discussed some legal grounds to justify the recalculations and the decrease of national debts. These four methods are just another opinion of the author of a new controversial economic phylosopy, CAPITAL-less-ISM. to be published soon. http://www.capital-less-ism.com/ In this dynamic model, the economy is viewed as a gigantic.....]]>

AND ABOUT HOW TO FREE OURSELVES FROM IT…..

In our last article we discussed some legal grounds to justify the recalculations and the decrease of national debts. These four methods are just another opinion of the author of a new controversial economic phylosopy, CAPITAL-less-ISM. to be published soon. http://www.capital-less-ism.com/ In this dynamic model, the economy is viewed as a gigantic circulating financial information (capital) system much the same way as the blood is circulating in the human body. The author demonstrates that exactly the same way as in the human body a critical amount of blood must circulate to sustain life, also in a nation’s economy a critical amount of capital must circulate to sustain its production-consumption exchange survival. Life equates econmy. Below this blood-capital level death or economic ‘’death’’ occurs.

In order to introduce you, somewhat simplisticly I admit, our concept about the method of how to pay back national debts, … let me illustrate it with a little story. Once a very poor man went into a sausage-grill store, even though he did not have money to buy the sizzling appetizing sausage. So his mouth watering, he began to eat his maigre piece of bread … with real gusto with the appetizing succulent smell lingering around the store. To his surprise the owner watching him for a while ordered him to pay two dollars for the enjoyment of the smell. The following heated argument attracted the nearby policeman who was doing his rounds in the neighborhood. He demanded explanations from both parties. After listening carefully to both of them, in order to settle the dispute the lawman sternly demanded a two dollar coin from the poor man. With sad discouragement, he obliged while the greedy store owner watched grinning with satisfaction. However, the policemen taking the coin, has rolled it repeatedly several times on the counter…. And finally told the owner ‘’HERE THIS MAN HAS PAID FULLY FOR THE SMELL OF THE SAUSAGE WITH THE TINKERING SOUND OF HIS ROLLING TWO DOLLAR COIN…’’ and gave it back to the poor man. Amazing wisdom!!! …. Don’t you think?…. so maybe the same wisdom could be applied to paying back national debts. Why…?

THE NATIONAL DEBTS CONSIST MOSTLY OF VIRTUAL NON-EXISTENT ‘’MONEYS’’ LENT TO GOVERNMENTS AS LOANS OF REAL MONEY. ….. SO WHAT’S WRONG PAYING THEM BACK ALSO WITH NON EXISTANT, VIRTUAL MONEY, ARTIFICIALLY CREATED AS A NATIONAL CAPITAL RESERVE POOL, CREATED BY A NATIONAL FRACTIONAL RESERVE BANKING PROCESS. FAIR IS FAIR….

The evidence showed that there wasn’t enough real capital in bank reserves to lend. The evidence showed that the nature of national debts in reality consists of only about 1%-to-5% of real borrowed money and the rest of the borrowed amount wasn’t real money. The other 98% of the debt was ficticious non-existant capital loaned as real capital, basically as an unsecured loan, as a monopoly game type money. For which the repayment in real money was requested and guaranteed by governments from the taxpayer’s money. However questionable this shrewd practice, this brilliant CAPITAL-less banking system nevertheless proved itself that it works. Fine!….But the moral implication concerning the obligation for repayment of the interest on the global amount of the national debt becomes questionnable. Our conclusion is that while paying interest on thereal money borrowed and secured by real monetary reserves is an obligation, the interest repayment obligation of the phantom capital portion is questionable. Much in the same line of thought is the re-calculation of the real size of the national debt. If we soubtract the phantom portion from the global national debt we might end up saying that basically our national debt is only about 2% of the global amount claimed by banks. Let alone if we calculate the global interests paid already on the phantom portion we might end up owning hardly anything …. But I might be wrong.

In any case, as a consequence of this fundamental consideration, there are four angles to consider as a FAIR WAY OUT and decrease the size of these huge national debts. These four solutions are outlined in detail by the author in a soon to be published book and author of a new controversial economic phylosopy, CAPITAL-less-ISM. … where SUFFICIENT capital circulation in a NATION is as crucial as SUFFICIENT blood circulation in our BODY.

First option: as mentioned, by reexamining the nature and recalculating the size OF THE NATIONAL DEBT. The differentiation of REAL CAPITAL from PHANTOM CAPITAL in the global amount borrowed.

We could retroactively re-estimate the real capitals lent (as reserves in the banks at the time of lending) and re-estimate the amounts of real capital and of phantom capital. Also review all interests paid for the phantom capital portion. Simply set the books back.

Second option: paying your NATIONAL ‘’VISA’’ DEBT with your NATIONAL ‘’MASTER-CARD’’ CREDIT.

It is a bit bold! Every country should establish their own NATIONAL PUBLIC BANK and assure their own ‘’fractional reserve banking’’ rights as any other bank. Then, this new National Public Bank could simply create its own ‘’phantom’’ capital as credit and simply pay back the national debt with this new credit. Virtual loans paid by virtual money.

Third option: balancing out franchising licensing fees for using “national fractional reserve banking” with paying off national debts to private banks.

Once the National Public Bank established, the fractional reserve banking rights could be nationalized as a public property like the road system. (NOTE: not the banks themselves but only the ‘’fractional banking rights’’). Under the new public-private banking partnership program, these then could be ‘’franchised back to banks’’. So then the P.O.N.C. Bank would receive back the lion’s share of all virtual capitals created by the licensed private banks. So the P.O.N.C. Bank would receive back 50 to 75% of all virtual capitals created by private banking institutions. From this amount of virtual capital the P.O.N.C. Bank would easily negotiate a repayment plan of previous national debts.

Fourth option: a new I.M.F. could simply buy back all national debts at fair market prices.

When the real estate market busted in the U.S. repossessed houses were sold at a fraction of their original market value. When unpaid defaulted consumer debts plagued massively financial institutions, they were sold for 1% of their original value to credit institutions. The same could be applied for national debts. The commercial value of the national debt of Greece is next to nil, because the chances of repayment are nil. So by buying back these national debts would give these countries a new life… without obliging them to ggo through an international humiliation. It could be combined with a program of national debt buy back and combined by some personal debts buy-back program.

This policy would give the United Nations and the I.M.F. some humanitarian image of respectability. The I.M.F. could start a new foundation where offshore banks could contribute, including some billionaires, like Saudi king, Warren Buffet, BillGates and many other phylantrophes, and/or maybe even the bank of Vatican as a new Christian initiative could associate itself to save third world countries from humiliating bankrupcy. It would also prevent the radicalization tendency of the third world countries.

These measures could liberate huge amount of annual interest payments back to the reserves of the National Banking and to the national economy of many impoverished countries. This mutual pact in sharing “fractional reserve banking” rights would also bring in huge revenues to the government. This harmonious cooperation between the private and the public banks would instantaneously create an efficient financing network similar to the brain, heart and the blood vessels in the body.

Well maybe I am dreaming ….. thank you.

]]>http://capitallessism.com/four-face-saving-solutions-for-greece-and-other-desperate-nations-to-re-negotiate-a-decrease-of-the-size-of-their-national-debts/feed/0#2 Should Greece and other developing nations review the size of their national debts… on legal grounds?http://capitallessism.com/should-greece-and-other-developing-nations-review-the-size-of-their-national-debts-on-legal-grounds/
http://capitallessism.com/should-greece-and-other-developing-nations-review-the-size-of-their-national-debts-on-legal-grounds/#respondFri, 29 Jan 2016 22:35:42 +0000http://capitallessism.com/?p=349Greece, Spain, Argentina and many other nations are hemorrhaging to a slow agonizing financial death …in trying to pay interest on their never repayable staggeringly huge national debt!… but what is national debt anyways?

Legally, Greece should not default … but should interest payment on the national debt be a priority over obligation to assure the survival on the people? ….Morally, maybe the I.M.F. should do a little soul-searching also. Maybe an elegant face saving solution could be worked out.....]]>

Greece, Spain, Argentina and many other nations are hemorrhaging to a slow agonizing financial death …in trying to pay interest on their never repayable staggeringly huge national debt!… but what is national debt anyways?

Legally, Greece should not default … but should interest payment on the national debt be a priority over obligation to assure the survival on the people? ….Morally, maybe the I.M.F. should do a little soul-searching also. Maybe an elegant face saving solution could be worked out for both parties involved.

This is just another opinion of the author of a new controversial economic phylosopy, CAPITAL-less-ISM. soon to be published. http://www.capital-less-ism.com/ In this dynamic model, the economy is viewed as a gigantic circulating financial information (capital) system much the same way as the blood is circulating in the human body. As the blood circulation sustains functioning of cells… capital circulation sustains production/consumption. Sufficient amount of capital must circulate freely as the blood in the body, otherwise capital ‘’flight’’ out of the country will DEPRIVE enterprises, institutions and people suffocating the entire economy, causing economic death.

AND NOW THE NEW IMPROVED SUPER EFFICIENT CAPITAL-BLOOD TRANSFUSION AND BLOOD REPAYMENT METHOD

Interest payments of 40—50% of the gross national revenues, constitute such a capital flight, depriving and suffocating development programs and social programs.

Let’s examine what is the true nature and the origins of national debts? During World War 1 and later during World War 2, the staggering demand for capital to sustain the war effort compelled banks to lend warring governments ficticious non existent capital, because capital reserves were insufficient. So, using the old concept of ‘’fractional reserve banking’’, 20-30 times more capital was lent out as loans than what was really in the reserves. For you writing out cheques with non sufficient funds is a felony, for banks it is ‘’creative enterpreneurship’’. For you, creating counterfeit money is a felony but creating artificial money as loans is legal for banks. The repayment in real money is guaranteed by governments and the taxpayers. So, ‘’fractional reserve banking’’…or artificial currency creation is the most brilliant idea, It is a very lucrative business… as long as interests are being paid on this ‘’phantom’’ capital by governments. Today banks use this process, lend out 110 times every dollar that is in their reserve. So no wonder national debts have skyrocketed.

As long as the economy was rolling everybody seemed happy. But as the economic stagnation set in, as the crisis increased, and as unrestricted capital flights out of a nation bled the economy, the inevitable result is that the capital circulation in the economy had drastically weakened. All these depleted the national reserves in circulation below a critical level. Beyond this point, the symtoms of strangulations appeared in the economy, suffocating certain key sectors. This is when the frictions started. As long as the government spendings covered their political agenda and at the same time it did not interfere with the interest paments on the national debt, nobobody seemed alarmed. However, when the crisis caused 50% unemployment, and when elected politicians came under fire to boost social programs to assure survival of the people… there just doesn’t seem to be enough money left to pay interest on national debt….. as it is calculated presently.

But wait a minute … let’s review a bit our method of calculation! Maybe we do not own so much….. just maybe!!!!!

If we go back to base one when we first contracted our national debt for the war. Let’s say the governement got 100 billion dollars as a war-loan … in reality we got maybe only 5 billions in real money from the real reserves and the rest 95 billions were only phantom non-existant capital. So my questioning is this: is it fair to demand paying interest on the phantom capital lent to us!!?? I have no problem assuming my obligations of paying interest to pension funds …. Where real saved up money of hard working people are concerned… but I question why should I have to pay interest on non existant ficticious capital, that could not have been come to existence had the governments not guaranteed it to begin with my taxes. It was a brilliant monetary bluff like in a giant monetary poker game. Consequently, the entire recalculation of the national debt and the incurred interest calculation is based on this simple assumption that we should only pay interest on the portion of the loan which represent the real capital portion (from the banks’ reserves) and we should not have any obligation to pay interest on 95% of the portion that wasn’t real capital, but only a virtual capital creation by the ‘’fractional reserve banking’’ process.

Now before everybody starts throwing eggs at me for this propostrous idea, I say to people why not, I recognize that it was brilliant solution to an urgent situation of lack of capital. It bcame to be most genius idea that proved that a CAPITAL-less-BANKING is feasible, and that CAPITAL-less-ISM actually works. So the banks actually deserve some credit for this fantastic invention… they also deserve some royalty for their invention…. But definitely not full interest payment for money they did not have and did not lend either.

So what to do with the national debts…. Simple!!! recalculate them retroactively for the past 100 years. We will realize that by having paid interest fully for the real capital portion loaned out included also the interest on the phantom capital portion, we have paid way-way too much already. Let’s be fair we should include a generous royalty to compensate the banks for having invented this process that permits a CAPITAL-less Economy to function like magic. The results of these bold re-calculations would probably reveal that nations already paid off already a long-long time ago their original debt’s real capital portion. As for the phantom portion…. Oh well!!! Since there was no real money involved so then why should there be a repayment obligation ???

Off course these considerations are quite startingly flabbergasting. So we should look for elegant face saving solutions for all parties involved. Borrowing nations shouldn’t unilaterally decide to default on their debts. It would create economi chaos. Lending institutions should not coerse nations to austerity programs stnagling their survival… only to satisfy interest payments.

So in our next article of these series we are going to indicate four face saving solutions that would permit all parties involved to find solutions to their national debt problems.

]]>http://capitallessism.com/should-greece-and-other-developing-nations-review-the-size-of-their-national-debts-on-legal-grounds/feed/0#1 Should Greece pay back the capital ‘’lent’’ by the I.M.F. and the European Union… or not??!!!!http://capitallessism.com/should-greece-pay-back-the-capital-lent-by-the-i-m-f-and-the-european-union-or-not/
http://capitallessism.com/should-greece-pay-back-the-capital-lent-by-the-i-m-f-and-the-european-union-or-not/#respondFri, 29 Jan 2016 22:32:34 +0000http://capitallessism.com/?p=343Should Greece pay back the capital ‘’lent’’ by the I.M.F. and the European Union… or not??!!!!By Dr. Anthony Horvath

Greece is bleeding to death …

Legally, Greece should not default paying interest on its national debt , because it would create.....]]>

Should Greece pay back the capital ‘’lent’’ by the I.M.F. and the European Union… or not??!!!!By Dr. Anthony Horvath

Greece is bleeding to death …

Legally, Greece should not default paying interest on its national debt , because it would create a precedent for financial anarchy. But morally, maybe the I.M.F. should not push to the wall and require repayment of any rescue capital packages either. In the meantime maybe we should examine the option of an EXISTENTIAL NATIONAL DEBT DEFAULT be emerging nations as bankruptcy option. At least this is the opinion, of Dr. Anthony Horvath, the author of a controversial new economic philosophy, CAPITAL-less-ISM, soon to be published. http://www.capital-less-ism.com/ In his dynamic model, he envisions the economy as a gigantic circulating financial information (capital) system much the same way as the blood is circulating in the human body. The similarities are striking. Blood circulation sustains the functioning of trillions of cells… capital circulation sustains production/consumption of billions of humans. Capital must circulate freely as the blood, otherwise capital ‘’clotting’’ will DEPRIVE enterprises, institutions and people suffocating the entire economy.

According his controversial views on the I.M.F. and the World Bank, the role of the international community (in occurrence the European Union… or the United Nations), on humanitarian grounds would be to help with the development of emerging nations and crisis stricken countries, much the same way as a mother is nourishing the fetus. Or much the same way as blood transfusion is administered to an injured person, capital ‘’transfusion’’ to ‘’sick’’ nations is like a blood transfusion: not reimbursable. Have you ever heard that a blood transfusion is ‘’reimbursable’’ to the donor? …so following the same logic relief funds for developing nations should be a continuous donation as well. It should continue until its economy has developed into a self-reliant autonomous economy. The criterions of such an economy is, where his consumer/survival needs has become in equity with his production capacity. Yes, with restrictions off course: such as the donor nations, besides providing capital, should also provide essential survival means (shelter, food, sanitation etc.), then education, health-care infrastructure, industrial infrastructure. So that in time its people and institutions will be able to take care of themselves… At the same time, the developing nation should accept education, health-care, and industrial know-how as guidance. We explicitly mention the word guidance and not colonizing policies.

The ultimate aim of such a concerted effort towards the developing economy should be: to decrease the unemployment to zero instead of aiming to decrease the national deficit to zero. We can also visualize this in nature. The same way also as the fetus is nourished by the mother until its development is complete, in exactly the same way the international community’s financial blood circulation role is to feed the ‘’fetus’’ nation until it is ready to function as an autonomous manner. So austerity measures on spending, on job cuts… are counterproductive.

For the DEVELOPMENT of the EMERGING NATIONS CAPITALLESSISM reinvents a NEW ROLE for the new IMF,

The INTERNATIONAL MONETARY FUND,

copied on the model of the HUMAN FETUS DEVELOPMENT PROCESS. …It should be called the: … INTERNATIONAL ‘’MOTHERING’’ FUND.

As the mother feeds the fetus to nurture its development into an independent person, the same way the new IMF should nurture the development of emerging nations or redevelopment of nations in crisis. (After either a natural or man-made disaster)

So nations like Greece, Spain, Argentina, Portugal, Haiti, Portugal and many desperate third world countries should benefit from this INTERNATIONAL MOTHERING FUND . This would be like the IMF, World Bank, World vision, Unesco, Oxfam and Medecins sans frontiers, all re-united under a unique umbrella of a new UNITED NATIONS with increased powers, ready to intervene, to train, support the new leadership and finance industrial development. Their role in short term: to intervene and assure the urgent survival needs(food, shelter and health-care), in medium term: give the ‘’know-how’’ to form/educate a group of potential leaders/professionals to assure the taking over the role of governing/assuring the all services. (establish educational, health-care institutions) Long term : to assure the funding the development of an industrial infrastructure. This should be an adequate industrial infrastructure appropriate for the nation to assure its own economic independence. I.e. the capacity to assure on its own an economic balance where its consumer needs would equate its production capacity. Only after this ‘’9-month’’ gestation period, should the IMF release the new-born nation. This should be free from reimbursements and interest. So who is going to for this utopia …. It is the investor bank’s money….. is it really? …. This is the topic of our next article in a series. Should Greece and other developing countries review the size and nature of their national debts… on legal grounds?

]]>http://capitallessism.com/should-greece-pay-back-the-capital-lent-by-the-i-m-f-and-the-european-union-or-not/feed/0Media & Eventshttp://capitallessism.com/media-events/
http://capitallessism.com/media-events/#respondThu, 12 Nov 2015 05:00:05 +0000http://capitallessism.com/?p=190http://capitallessism.com/media-events/feed/0Welcome to my new blog!http://capitallessism.com/welcome-to-my-new-blog/
http://capitallessism.com/welcome-to-my-new-blog/#respondThu, 12 Nov 2015 04:58:44 +0000http://capitallessism.com/?p=188Welcome. My name is HORVATH, ANTHONY, PHD, author of CAPITALlessISM. I’m so happy to have you as a visitor to my blog about my new book. This project is very special to me, and I hope to share some of that excitement with you here.

I’ll be using this blog to interact with you about CAPITALlessISM, expanding on some of the topics in it and blogging on some of the ideas related to my book. This is a great place.....]]>

Welcome. My name is HORVATH, ANTHONY, PHD, author of CAPITALlessISM. I’m so happy to have you as a visitor to my blog about my new book. This project is very special to me, and I hope to share some of that excitement with you here.

I’ll be using this blog to interact with you about CAPITALlessISM, expanding on some of the topics in it and blogging on some of the ideas related to my book. This is a great place for you to get to know me, and I’m looking forward to getting to know you, too. What did you think of CAPITALlessISM? What questions do you have for me? How do you relate to my book?

I’ll be returning here frequently with new posts and responses to feedback from you. Until next time, tell me a little bit about yourself.